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by 8/23/2000 11:07 AM
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CMGI (CMGI - 39-1/2) is a firm that invests in high-quality Internet names. The company's portfolio consists of 70 equities, including such names as Lycos (LCOS - 61),, and iCAST. Additionally, the company owns an 83-percent stake in the search engine Alta Vista.

This morning, CMGI announced its latest method of propaganda for its name; it is buying the naming rights to the New England Patriots' stadium. CMGI will pay $7.6 million each year for a 10-year period.

The technology company could use a boost of late, given its recent price action. Since hitting double-top resistance in early March, CMGI has declined over 70 percent. Today's news has given the equity a nearly five-percent boost, taking it above its 10-day and 20-day moving averages. CMGI may want to take heed of "The Stadium Jinx," a phenomenon which Bernie Schaeffer discussed in early July.

by 8/23/2000 10:42 AM
Stocks quoted in this article:
The NYSE new highs list is dominated by oil-service names, which have managed to buck the broad downtrend so far today. Oil-service stocks hitting multi-year highs today include R&B Falcon (FLC - 27-7/16), Schlumberger (SLB - 87-13/16), Diamond Offshore (DO - 45-13/16), Parker Drilling (PKD - 7-3/16), Noble Drilling (NE- 49-11/16), and Ensco International (ESV - 40-15/16).

Despite the sector's strength, Schaeffer's put/call open interest ratio (SOIR) for a basket of oil-service stocks reflects investor pessimism toward the group. The current SOIR for the sector stands at 0.45, well above a low of 0.29 from late May. For more information on SOIR, please visit Schaeffer's Daily Sentiment.

by 8/23/2000 10:28 AM
Stocks quoted in this article:
i2 Technologies (ITWO - 148-1/16) manufactures software that allows its users to schedule and plan production activities. The firm's customers include such corporations as Ford Motor (F - 27-5/16), Compaq Computer (CPQ - 33-1/16), and Nokia (NOK - 41-3/4). The stock debuted on the Nasdaq Exchange a little over four years ago.

This morning, ITWO has tacked on moderate gains amid a lagging technology market. This strength was spurred by news that ITWO has added additional high-profile customers to its database. Automakers DaimlerChrysler AG (DCX - 54-1/2), Toyota Motors (TM - 83-1/8), and Volkswagen AG (VOW GR - 44.37) have all signed contracts with the software maker.

On the technical front, ITWO has been trending steadily higher within an upsloping channel since mid-April. This channel has been defined by a series of higher lows and higher highs. The shares are currently approaching the upper rail of this channel.

by 8/23/2000 10:19 AM
Stocks quoted in this article:
Morgan Stanley Dean Witter (MWD - 101-3/4) has been on a solid run for the past three months, appreciating 63 percent from its late-May lows. After notching an all-time high on August 14, the shares have consolidated toward their 10-day moving average.

This price action has attracted call players recently. Over the past four sessions, open interest on the September 105 and 110 calls has increased by 2,800 and 2,100 contracts, respectively.

In today's action, however, the put side is active with 2,025 contracts changing hands on the September 95 put. This option has open interest of 1,621 contracts. Furthermore, today's activity went off at the ask, suggesting the initiation of new positions. This is currently the most-active put on the CBOE.

by 8/23/2000 10:13 AM
Stocks quoted in this article:
Dillard's (DDS - 13-5/8) is the number-three operator of upscale department stores, lagging behind Federated Department Stores (FD - 26-13/16) and the May Company (MAY - 24-7/16). The retailer owns around 430 stores in 30 states nationwide.

This morning, DDS announced second-quarter earnings of 10 cents per share, significantly missing Wall Street's consensus estimate of 19 cents. These figures represented a 70-percent falloff from 1999 earnings numbers. The firm also reluctantly noted that same-store sales for the quarter dropped three percent.

Some of this news may have already been discounted into the share price, as DDS's price action this morning has not been disastrous. Shortly after 10:00 a.m, DDS shares were trading a non-calamitous three percent lower. The equity has been trading below its 10-month and 20-month moving averages since July 1999. <

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